investor presentation - epam systems - investors

© 2021 EPAM Systems, Inc.

Investor PresentationMay 2021

2CONFIDENTIAL | © 2021 EPAM Systems, Inc. 2© 2021 EPAM Systems, Inc.

These materials contain forward-looking statements. You should not place undue reliance on these statements because they are subjectto numerous uncertainties and factors relating to the Company's operations and business environment, all of which are difficult topredict and many of which are beyond the Company's control. Forward-looking statements include information concerning theCompany's possible or assumed future results of operations, including descriptions of its business strategy. These statements mayinclude words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Thesestatements are based on assumptions that we have made in light of management's experience in the industry as well as our perceptionsof historical trends, current conditions, expected future developments and other factors we believe are appropriate under thecircumstances. You should understand that these statements are not guarantees of performance or results. They involve known andunknown risks, uncertainties and assumptions, including the potential impacts of the COVID-19 pandemic on our business operationsand the business operations of our customers; civil unrest in the geographies where we operate; the world economy; our expectedfinancial performance; and macroeconomic and market conditions and volatility. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actualfinancial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.These factors are discussed in more detail in the Company's filings with the Securities and Exchange Commission. These risks could causeactual results to differ materially from those implied by forward-looking statements. You should keep in mind that any forward-lookingstatement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time totime, and it is impossible to predict these events or how they may affect the Company. The Company has no obligation to update anyforward-looking statements after the date hereof, except as required by federal securities laws.

Safe Harbor Statement


1. Who We Are 4

2. The EPAM Story 8

3. Our Positioning 10

4. Market Trends 13

5. How We Do It 15

6. Highlights 19

Table of Contents


1. Who We Are


About EPAM

We are consultants, designers, architects and engineers who enable our customers to be competitive and disruptive in the marketplace through

innovative technology solutions while helping them to navigate successfully through multiple waves of technology change.

We help our customers be more competitive by delivering solutions through best-in-class engineering combined with strategy, design,

consulting and innovation services.

We adopt a global growth strategy, thinking and acting like start-ups, working in multidisciplinary teams and delivering results. Relentlessly.


R E V E N U ES BY G EO G R A P H Y( R e p o r t e d $ & Yo Y G r o w t h )

R E V E N U ES BY I N D U ST RY V E RT I C A L( R e p o r t e d $ & Yo Y G r o w t h )

38,800+ Engineers, Designers & Consultants 43,450 EPAMers 35+ Countries

EPAM Fast Facts – Q1 2021*

*Figures are as of Q1 2021, percentages are presented on a YoY basis unless otherwise noted..

Financial Services

Travel & Consumer

Emerging

Life Sciences & Healthcare

Business Information & Media

Software & Hi-tech

16.3%

23.6%

28.3%

20.7%

31.6%

6.5%

$147 M

$91 M

$148 M

$169 M

$139 M

$87 M APAC

North America

Europe

CIS20.6%

16.3%

21.2%

53.9%$21 M

$30 M

$260 M

$470 M

GAAP EPS of $1.86, +26.5% Non-GAAP EPS of $1.81, +26.6%

FOUNDED IN

1993U.S. HEADQUARTEREDPUBLIC COMPANY

(NYSE:EPAM)

REVENUES

$781MREVENUE GROWTH

5 Year Revenue CAGR of 24%(2015-2020)

2020 REVENUES

$2.7B


CIS

ArmeniaBelarusKazakhstanRuss iaUzbek istan

Growing, Global Presence in More Than 35 Countries1

NORTH AMERICA

Canada Mexico United States

EUROPE

Austr iaBulgar iaCzech Republ icFranceGeorg iaGermanyHungaryIre landLi thuaniaMaltaNether landsPolandRomaniaSpainSwedenSwitzer landUkra ineUnited K ingdomIsraelUnited Arab Emirates

APAC

Austra l iaChinaHong Kong SARIndiaJapanSingaporeVietnam

Footnote References on Page 23


2. The EPAM Story


The EPAM Advantage - More Than 25 Years of Software & Digital Platform Expertise

1993 1996 1997 2003 2004

2009 2012 2013 2016 2019

EPAM opens for business with three employees.

EPAM is chosen to help Colgate-Palmolive develop a Salesforce Automation solution and deploy it across their organizations in Europe and Latin America.

The success of Colgate-Palmolive’s SalesforceAutomation solution opens the door to EPAM’s first major software product development client: SAP AG.

EPAM completes its first decade having built a foundation of delivering Software Products and Solutions for more than 200 independent software companies.

EPAM enters the European market, beginning a multi-year journey of geographic and industry diversification.

In the midst of a historic global recession, EPAM focuses on investing in talent and tools, which will serve as the platform to support the company's future growth.

EPAM approaches the end of its second decade serving most of the world’s major new platform companies who were changing everything from search to transportation to collaboration.

The Company establishes itsDigital Engagement practice and accelerates services to help clients in customer experience, design and eCommerce, in addition to expanding its offerings in Agile, BI/Analytics and Mobile.

EPAM extends its leadership position into Digital Product & Platform Engineering Servicesspace2, and is named one of the top 25 Fastest Growing Public Tech Companies by Forbes.

The Company launches EPAM Continuum, the company’s vision for integrated Consulting and Engineering services. Of our top 100 clients, 20% are in the Fortune 500 and more than 50% are in the Forbes Global 2000.

I P O

$0 revenues 3 employees

$35M revenues 500 employees

$434M revenues10,000 employees

$1.2B revenues22,000 employees

$2.3B revenues36,000 employees



3. Our Positioning


Infrastructure Management Services

Hardware Management

Services

Application Management

Services

Business Process Outsourcing

Enterprise IT Services is a $1 Trillion Total Addressable Market3

Consulting

IaaS & Infrastructure Utility Services

Solutions Build & Implementation

16%

7%

8%

19%

20%

25%

5%

“BU ILD ” “MA IN TA I N”



Construct & Consulting Services $460B Market3

Digital Platform + Product Engineering$150B Market4

Digital Platform Engineering Services

Product Engineering

10%

5%

Digital Platform & Product Engineering – A Subset of the Construct & Consulting MarketEPAM is Positioned in the Most Dynamic Subset of the Construct & Consulting Services Market

Consulting

Solutions Build & Implementation

20%

25%

“ B U I L D ” “ M A I N T A I N ”

Infrastructure Management

Services

Hardware Management

Services

Application Management

Services

Business Process Outsourcing

IaaS & Infrastructure Utility Services



4. Market Trends


MARKET ENTERPRISE

New competitors running on nimble technologies

The customer centric experience

Pushing digital capabilities through products and services

Adaptiveness

Agile IT

Application modernization

Talent transformation

The Enterprise Landscape is Increasingly More Competitive, Complex and in Need of Change

Smart sensors

Big data analytics & advanced algorithms

Multilevel customer interaction & customer profiling

Augmented reality & wearables

Cloud computing

TECHNOLOGY

Mobile devices

IoT platforms

Location-detection technologies

Advanced human-machine interfaces

Authentication & fraud detection

3D printing


5. How We Do It


C O N S U LT D E S I G N E N G I N E E R O P E R AT E O P T I M I Z EWe h a r n e s s t h e p o w e r o f o u r i n t e g ra t e d c o n s u l t i n g t a l e n t , a l o n g s i d e o u r d a t a e x p e r t i s e ,

t o w o r k o u t w h e r e w e c a n p r o v i d e v a l u e a n d a d d r e s s

c l i e n t s ’ u n i q u e n e e d s .

O u r t a l e n t e d d e s i g n e r s b r i n g c l i e n t s ’ i d e a s t o l i f e . T h e y

k n o w h o w t o h u m a n i z e t e c h n o l o g y a n d b u s i n e s s t o

c r e a t e m e a n i n g f u l , m u l t i m o d a l d i g i t a l

e x p e r i e n c e s .

We m a ke t e c h n o l o g y t ra n s f o r m a t i o n h a p p e n .

C l i e n t s g e t o m n i - c h a n n e l s o f t w a r e p l a t f o r m s

a r c h i t e c t e d f o r t h e f u t u r e a n d b u i l t t o s c a l e .

We d e p l o y c o m m e r c i a l s o f t w a r e p r o d u c t p ra c t i c e s t o d e l i v e r n e x t - g e n e ra t i o n ,

i n t e g ra t e d a n d s m a r t - r u n s e r v i c e s .

We t u r n p r o c e s s o p t i m i z a t i o n i n t o p l a t f o r m s f o r i n n o v a t i o n

t h r o u g h d a t a - d r i v e n d e c i s i o n s , u s i n g a

p r o d u c t - c e n t r i c a p p r o a c h .

We enable our c l ients ’ bus iness transformation by engaging mult i -d isc ip l inary teams who combine

deep bus iness expert i se with des ign th ink ing , world-c lass engineer ing , modern operat ions pract ices

and leading tools and frameworks for opt imiz ing performance. We are Dig i ta l Orchestrators and we

del iver ag i le transformation at scale .

H O W W E D O I T

17CONFIDENTIAL | © 2021 EPAM Systems, Inc.

We fuse integrated consulting with EPAM’s engineering expertise to accelerate breakthrough thinking into meaningful impact.


OpportunityIdentif icat ion

Solution Definit ion

PrototypeTesting

MVP BETA Scale & Operate

Multidisciplinary teams in EPAM Continuum look at problems through specialty lenses – working with clients to frame the right problems to solve

WE HELP CLIENTS SET THE RIGHT DIRECTION

We then support agile and iterative development teams within EPAM – ensuring ongoing improvements and enhancements along a multi-phase roadmap

THEN WE DELIVER AT SPEED AND SCALE

As one of the world’s leading engineering companies –we help clients dream it, design it and build it. We make it real.


6. Financial & InvestmentHighlights


14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

2015 2016 2017 2018 2019 2020

A History of Strong & Consistent Financial PerformanceStrong Revenue Growth (Bn) Stable Non-GAAP Operating Margins5 Strong Non-GAAP EPS Growth6

Cash Balance (Bn) Total Shareholder Return8 Cumulative Total Return9


CAGR

13%

26%

35%

13%

27%

49%

Russell 1000 S&P 500 IT EPAM

5 Year CAGR

3 Year CAGR

$0.5

$1.2

$1.9

$2.6

$3.3

2015 2016 2017 2018 2019 2020

CAGR3 Year – 22%5 Year – 24%

$2.90$3.46

$4.38

$5.42

$6.34

2016 2017 2018 2019 2020

$0.0

$0.3

$0.6

$0.9

$1.2

$1.5

2015 2016 2017 2018 2019 2020

CAGR 7

3 Year – 22%

-20%

40%

100%

160%

220%

280%

2017 2018 2019 2020

EPAM

S&P 500 IT

Russell 1000


2STRONG REVENUE

GROWTH & VISIBILITY

Industry leading 3- and 5-Year revenue CAGR of 22% and

24%, respectively

80-90% revenue visibility throughout the fiscal year

90% recurring revenues from clients greater than one year

Approximately 85% of revenues is

time & material

1MARKET

POSITIONING

Well positioned in a large$150B market

Of our top 100 clients, more than 25% are in the Fortune 500 and more than 50% are in the Forbes Global 2000.

Diversified client portfolio across 11 key industries

Loyal client base with an average of 8 years among

our top 10 clients1

3STRONG

PROFITABILITY

Stable operating margins supporting superior

earnings growth

Proven ability to grow and sustain strong profitability with 3 Year Non-GAAP EPS

CAGR of 22%6

Consistent levels of profitability allowing for

continuous investment to support top-line growth

4STRONG

CASH FLOW & BALANCE SHEET

$494M of cash flow from operations for the last 12 months10

$1.4B cash balance with nominal debt10

Capital allocation focusedon acquisitions to add to or

enhance capabilities

$275M line of credit available in U.S.10

Investment Highlights



ThankYou


1. As of 2020

2. Forrester Wave™: Digital Platform Engineering Services, Q2 2016

3. Gartner Forecast Analysis: IT Spending, Worldwide September 2019

4. Company's estimate of the Digital Platform + Product Engineering market as percentages of the $1 trillion Enterprise IT Services market.

5. Non-GAAP Operating Margin is adjusted from GAAP Income from Operations Margin to exclude stock-based compensation expenses, acquisition related costs including amortization of intangible assets, impairment of assets, and certain other one-time charges and benefits

6. Non-GAAP EPS is adjusted from GAAP EPS to exclude stock-based compensation expenses, acquisition-related costs including amortization of intangible assets, impairment of assets, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments

7. In 2016, EPAM revised its non-GAAP policy to consider, among other things, related effect on income taxes of the pre-tax adjustments. This revised policy has been consistently applied since 2016. Amounts reported prior to 2016 were excluded from the historical presentation as these amounts were prepared under a previous methodology and are not comparable

8. Total Shareholder Return CAGRs are based on market and stock performance through 2020

9. Cumulative Total Return assumes that on December 31, 2017, equal amounts was invested in EPAM and in each of the other two indices. The performance shown in the graph represents past performance and should not be considered an indication of future performance.

10. As of Q1 2021

Footnotes

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